The comparative balance sheets for 2016 and 2015 and the statement of income for
ID: 2591108 • Letter: T
Question
The comparative balance sheets for 2016 and 2015 and the statement of income for 2016 are given below for Wright Company. Additional information from Wright's accounting records is provided also.
The common stock of Microsoft Corporation was purchased for $39,000 as a short-term investment not classified as a cash equivalent.
Prepare the statement of cash flows of Wright Company for the year ended December 31, 2016. Present cash flows from operating activities by the direct method. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands (i.e., 5,000 should be entered as 5).)
The comparative balance sheets for 2016 and 2015 and the statement of income for 2016 are given below for Wright Company. Additional information from Wright's accounting records is provided also.
Explanation / Answer
Workings
WRIGHT COMPANY Statement of Cash Flows For year ended December 31, 2016 Cash flows from operating activities From customers 683 To suppliers of goods -327 To employees -91 For interest -9 For income taxes -102 Net cash flows from operating activities 154 Cash flows from investing activities Sale of land 26 Purchase of short-term investment -39 Purchase of equipment -195 Net cash flows from investing activities -208 Cash flows from financing activities Repayment of notes payable -39 Sale of bonds payable 78 Sale of common stock 94 Payment of cash dividends -55 Net cash flows from financing activities 78 Net increase (decrease) in cash 24 Cash balance, January 1 125 Cash balance, December 31 149